Boeing to Shut California Plant 3 Months Earlier Than expected
Boeing Co. announced plans to stop production of C-17 cargo jets at the company’s sprawling Long Beach, Calif., plant three months earlier than it previously anticipated.
The aerospace giant said Monday it will shutter the 1.1-million-square-foot facility in mid-2015 because of “current market trends and the timing of expected orders.” The plane-maker had initially said that production would come to an end in late 2015.
The company said it expects to record $50 million in accounting charges in the first quarter as a result of Monday’s announcement.
Boeing said about 2,200 employees support the C-17 Globemaster III program in California. The company already began workforce reductions this year and plans to continue the cuts through closure.
The C-17 Globemaster III is a massive, four-engine jet that can haul 60-ton tanks, troops and medical gear across continents and land on short runways.
The Air Force awarded the contract for the C-17 in 1981, as the United States faced potential military threats that required massive cargo lifts.
Design work soon followed, and the first C-17 to fly — known as T-1 — took off in 1991.
Boeing announced plans to close the plant in September, just a week after it delivered its 223rd and final C-17 to the Air Force. The company still has a few foreign orders to fill.
The plant is one of the last vestiges of an era in which aviation and aerospace helped build Southern California’s middle class, and it was a major employer in Long Beach for decades.
There are no plans to move a new production program to the plant.
Boeing has said some workers may be moved to other jobs inside the company, but many will have to enter a still-tough job market, with unemployment at 8.7 percent in Los Angeles County.
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